Overtime Pay in Latvia 2026: Rate, Record-Keeping and Employee Consent
A project deadline is approaching, and an employee agrees to stay two extra hours to finish it. Seems simple — but Latvia's Labour Law attaches several specific requirements to this situation, and getting them wrong can become a problem in a State Labour Inspectorate audit or in a dispute with the employee.
Overtime regulation in Latvia is more precise than most people assume — not just the pay rate, but whether overtime can be required at all, how much, and how it has to be recorded.
Key takeaways
Overtime work must be paid at at least 100% on top of the normal hourly/daily rate — unless the employment contract or collective agreement sets a higher rate.
A lower rate (but never below 50%) is only allowed if a sector-wide general agreement has raised that sector's minimum wage by at least 50% above the national minimum.
Overtime is only permitted if the employer and employee have agreed to it in writing (without an agreement, only in the exceptional cases set out in the law), and it may not exceed an average of 8 hours per 7-day period, calculated over a reference period no longer than 4 months.
The cash premium can be replaced with paid time off if both parties agree — normally to be used within 1 month.
The base rate — at least double pay
Article 68 of the Labour Law sets a clear base principle: for overtime work or work on a public holiday, an employee is owed a premium of no less than 100% of their set hourly or daily wage rate (or the piece-rate price for the work performed). In plain terms — overtime pays at least double the normal rate.
Labour Law, Article 68, Part 1 (unofficial translation): “An employee who performs overtime work or work on a public holiday receives a premium of not less than 100 per cent of the hourly or daily wage rate set for them, or, if piece-rate pay has been agreed, not less than 100 per cent of the piece-rate price for the amount of work done.”
Source: Labour Law, Article 68
This rate is a minimum, not a fixed requirement — a collective agreement or an individual employment contract can set a higher premium, but never lower than what the law requires (with one narrow exception, below).
When the rate can be lower than 100%
Article 68, Part 3 of the Labour Law allows one narrow exception: if a sector has a generally binding general agreement (ģenerālvienošanās) that raises that sector's minimum wage or hourly rate by at least 50% above the national statutory minimum, the general agreement may set the overtime premium as low as 50%.
In practice, this exception applies to a limited number of sectors where such an agreement exists — and only if it really provides for an increase of at least 50%. For example, in 2026 the construction-sector general agreement does not meet this condition (the sector minimum wage of €1,050 is about 35%, not 50%, above €780), so the standard 100% rate applies there. If your company doesn't fall under a sector with such an agreement, the base 100% rate always applies.
When overtime can be required at all
Overtime work isn't a matter of the employer's unilateral will. Article 136, Part 2 of the Labour Law states that overtime work is permitted if the employee and the employer have agreed to it in writing. In practice, it is advisable to record clearly in writing what overtime work the parties have agreed on. Without the employee's written consent, overtime may only be ordered in three exceptional cases (Article 136, Part 3): - where the most urgent needs of society require it; - to prevent the consequences of force majeure, an accident or other extraordinary circumstances that affect or may affect the normal course of work in the company; - to complete urgent, unforeseen work within a set time. A project deadline that was known in advance is usually not "unforeseen" work — it needs a written agreement. If overtime in one of these exceptional cases continues for more than six days in a row, further overtime requires permission from the State Labour Inspectorate, unless a recurrence of similar work is not foreseeable or the Cabinet of Ministers has declared an emergency situation or a state of exception (Article 136, Part 4). Persons under 18 may not be employed in overtime work at all.
There's also a time limit: overtime work may not exceed an average of 8 hours per 7-day period, calculated over a reference period no longer than 4 months. This means a given week can have more overtime, as long as it's balanced by a lighter load in other weeks within the same reference period.
Source: Labour Law, Article 136
Aggregated working time — overtime is determined over the reference period
If an employee is on aggregated working time (summētais darba laiks, Labour Law Article 140), overtime isn't assessed day by day or week by week. Overtime is work performed above the normal working time set for the reference period (Article 140, Part 5). A longer shift or a busier week doesn't by itself mean payable overtime — it can be offset by shorter shifts on other days of the same reference period.
Unless the employment contract or a collective agreement says otherwise, the reference period is one month; an employment contract can extend it to up to 3 months, a collective agreement to up to 12 months. So the number of overtime hours and the premium can only be finally calculated once the reference period ends, by comparing hours actually worked with the normal working time for that period. Even on aggregated working time, work of more than 24 hours in a row or 56 hours in a week is prohibited.
Source: Labour Law, Article 140
An alternative to cash — paid time off
The employer and employee can agree to replace the cash premium with paid time off, proportional to the overtime hours worked. This time off must be granted:
in the standard case — within 1 month of the overtime being worked;
if the employee is on an aggregated working-time schedule (summētais darba laiks) — within the next reference period, but no later than 3 months.
This option can benefit both sides — the employee who wants more flexible time planning, and the employer avoiding a direct cash outlay — but it requires a clear agreement and documentation.
Working-time records — a mandatory obligation
Article 137 of the Labour Law requires the employer to keep precise records of each employee's working time, specifically noting separately:
total hours worked,
overtime work,
night work,
work during the weekly rest period,
work on a public holiday,
downtime (idle time).
Source: Labour Law, Article 137
This isn't a formality — in a State Labour Inspectorate audit or a dispute with an employee, this record is what's used to check whether overtime was paid correctly and whether the statutory limits were exceeded. The employee has the right to check the employer's records personally or through employee representatives (Article 137, Part 3).
A practical example
Say employee Pēteris has a set hourly rate of €10/hour and normal (non-aggregated) working time. In a given week, under a written agreement, he works 6 hours of overtime.
Calculation | |
|---|---|
Normal hourly rate | €10.00 |
Overtime premium (100%) | +€10.00/hr |
Total pay per overtime hour | €20.00/hr |
For 6 overtime hours total | €120.00 |
If Pēteris worked in a sector with a general agreement raising the sector minimum wage by at least 50%, and the employer chose to apply the minimum permitted reduced rate, the calculation would change:
Calculation | |
|---|---|
Normal hourly rate | €10.00 |
Overtime premium (min. 50%, if the general agreement allows it) | +€5.00/hr |
Total pay per overtime hour | €15.00/hr |
It's worth remembering — this reduced rate is an exception that only applies if a relevant sector general agreement genuinely exists. Without it, the base 100% rate always applies.
Common mistakes
Requiring overtime without the employee's written consent. Even if the employee verbally agrees to stay longer, without written form the employer risks a violation.
Applying the reduced 50% rate without grounds. This rate is only available under a specific sector general agreement — it can't be applied "by default."
Not recording overtime separately from total working time. Article 137 of the Labour Law requires a separate record, not just a total hours-worked figure.
Forgetting the 8h/7-day average limit. Even with the employee's consent, overtime has a time cap that must be calculated across the reference period, not week by week in isolation.
Counting overtime week by week on aggregated working time. Then overtime is only what exceeds normal working time over the whole reference period — it's determined when the period ends.
Frequently asked questions
Can an employee refuse to work overtime?
Usually, yes — without a written agreement, the employer cannot require overtime work, except in the cases listed in Article 136, Part 3 of the Labour Law.
What's the minimum overtime premium?
At least 100% of the employee's set hourly or daily wage rate — in practice, that means at least double pay for overtime hours.
Can the premium be replaced with a day off instead?
Yes, if the employer and employee agree. The time off must be granted within 1 month (or up to 3 months if aggregated working time applies).
Is there an annual maximum number of overtime hours?
The main statutory limit is an average of 8 hours per 7-day period, calculated over a reference period of up to 4 months — not a separate fixed annual maximum.
When can the reduced 50% overtime rate be applied?
Only if the sector has a generally binding general agreement that raises the sector's minimum wage by at least 50% above the national statutory minimum.
Is working-time record-keeping mandatory for all employees?
Yes. The employer must record each employee's working time, separately noting overtime, night work, work during the weekly rest period, work on public holidays, and downtime.
What happens if overtime isn't paid correctly?
It can trigger a State Labour Inspectorate audit and an employee complaint, as well as an obligation to pay the difference, with possible further consequences for the employer.
Conclusion
Overtime regulation in Latvia requires attention at three levels — the correct pay rate, the employee's written consent, and precise record-keeping. The base rate (at least 100%) applies to most companies; the reduced 50% rate is an exception available only in specific sectors with an active general agreement. A clear internal process for requesting and recording overtime protects the company from both labour disputes and inspection risk.
For an exact salary calculation including overtime premiums, use our salary calculator.
Related reading
See also: payroll taxes for employers, sick leave — how A and B certificates work, salary changes and the minimum wage in 2026, and construction company accounting in Latvia (a sector whose current general agreement does not reduce the overtime rate).
Legal sources and references
Need help setting up working-time and overtime record-keeping? Get in touch — we'll help you build a correct, legally compliant process.
Last updated: September 2026. Information based on the Labour Law. This article is a general explanation and does not replace individual legal or accounting advice. Whether a specific sector general agreement is in force needs to be checked individually — consult a specialist.
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